Australian state-owned telecommunications operator Telstra Corp is facing its second multimedia disaster this year as failure to award core technology contracts could push the company’s on-line multimedia and video-on-demand plans over the edge. In February, Telstra’s $23m on-line venture with Microsoft Corp, On Australia, fell through when the two failed to agree on strategy (CI No 2,871). In the event, Telstra was left holding the baby – and the considerable task of running the project alone. Now the company faces a second project going astray as its ‘Gungahlin’ interactive television trial in Canberra’s northern suburbs looks set for delay if the carrier falls further behind in awarding contracts for the trial’s core technology. Tenders for the technology – set-top boxes, cabling, head-end equipment and content – were to have been finalized last month, but Telstra has now confirmed that there would be a delay. It said Telstra Multimedia was unable to fix a certain date but assured that negotiations were still under way. The Gungahlin trial is to involve rolling out the new hybrid coaxial cable past 5,000 households at a cost of $31m. According to the Australian Financial Review, Telstra said it hoped to persuade 40% of them to sign up for its initial offering of analog broadcast television, including Foxtel and the free-to-air channels, and some sort of advanced telephony. Later on subscribers would be offered narrowband on-line services, such as Internet access, and broadband on-line services such as high-speed Internet and multimedia access.
